Your Tech Story

NetSuite

The Acquisition Of Netsuite Made Oracle A Bigger Company

With the emerging IT industry in India and abroad as well, many new companies are coming up rapidly. Some of the dreams of making their company bigger and some of them after earning dollars sell the company. But, the immense potential of internet, data, and telecommunication has increased the scope for employment as well. Especially went it comes to services like data storage, data security, cloud computing, etc.

Oracle has always been a very famous company in the IT sector. But, after the acquisition of NetSuite in 2016, it has become a more prominent service provider in the world. NetSuite is a cloud computing company founded in 1998. Evan Goldberg founded the company to improve the services provided by a business. Zachary Nelson joined the company in 2002 and under his leadership, the company filed its first successful IPO. It built software that helped the business to manage their finance, improve relationships with customers, etc.

Currently, NetSuite operates under the parent company, Oracle. It is exclusively a company based on cloud-based management.

Evan Goldberg

Evan Goldberg went to Harvard University to acquire his bachelor’s degree in Applied Mathematics. Evan’s career started with joining Oracle in 1987. His position in the company was a Software Engineer at the beginning and eventually, he became the Vice President of the company. He left the company in 1995 and founded mBed Software in the same year. Evan founded NetSuite in 1998 and currently, he is the EVP of the company (Oracle NetSuite).

Zachary Nelson

Born into a family in Nebraska, Zachary belonged to a very huge family. Zachary pursued his higher studies in biology and acquired both his bachelor’s and master’s in the same from Stanford University. His field of higher studies and careers were diametrically opposite of each other. After completing his studies, he went for marketing, finance, sales, etc.

He worked at companies like Sun Microsystems, McAfee, Oracle Corporation, Cunningham Communication, etc. Zachary worked at Oracle for many years and he became the VP, World Wide Marketing at Oracle. Also, he broke the record of becoming the youngest VP in the history of Oracle. He joined NetSuite in 2002. Apart from running big companies, he is also a big investor.

The History

When Evan initially founded the company, he named it NetLedger. Evan, from his past experiencing, was evidently from a finance background and hence NetLedger focused on accounting as well. In brief words, NetLedger provided web-hosted accounting software. But, there are a lot of operations under the finance section of a company. So, to make sure NetLedger can provide a company’s all these essential functionalities, Evan decided to expand.

He kept on adding features, and the company eventually became more versatile. And, all these products were added in the list before the term “cloud computing” even came into play. But, it seems like an idea always existed, new terms just came in. Evan established the company with financial support from Oracle.

Funding and Growth

Then CEO of Oracle, Larry Ellison, helped Evan in many ways to set the company. Evan was provided with both the seed funding as well as employees from Oracle to start NetLedger. He received a seed funding of $125 million from Oracle. Initially, Oracle licensed the company. But, it didn’t seem like a good idea and they called it off.

NetSuite gained unexpected popularity because it is considered as the first-ever company to come up with cloud computing. The company started providing related services even the term was introduced. So, the clients of NetSuite were in a very advantageous position of using such software.

In July 2002, Zachary Nelson became the CEO of the company. And, he drove NetSuite’s annual revenue to $1 billion from $1 million.

The company under Zachary Nelson

Under Zachary Nelson, the company’s first successful IPO was led by him in 2007. NetSuite then was no more a start-up but a big powerful company. By 2017, the company’s annual revenue summed up to $1 billion. Under his leadership, the company made many big acquisitions which include OpenAir in 2008, TribeHR in 2013, and Bronto Software in 2015.

In July 2016, Oracle announced that it will be acquiring NetSuite for $9.3 billion. The deal was closed in November. The headquarters of the company is in California and currently, it has around 600 employees.

Leave a Comment

Your email address will not be published. Required fields are marked *